The current system of accounting is called the double-entry system because a debit to one account is balanced by a credit to another account.

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The statement is true. In the double-entry system of accounting, every transaction affects at least two accounts - one account is debited while the other account is credited. The debited account records the increase in expenses, decrease in assets or increase in liabilities, whereas the credited account records the decrease in expenses, increase in assets or decrease in liabilities. The sum of all debits should equal the sum of all credits, ensuring that the accounting equation stays in balance.

The Current System of Accounting Is Called the Double-Entry System